Yuan Losses Have Room to Run as Covid Puts Economy Under Siege

(Bloomberg) — The yuan’s sudden slide will gather pace over the next few months as markets price in a worsening outcome for the Covid-stricken economy, analysts say.

Credit Agricole CIB, Standard Chartered Bank Plc, BNP Paribas SA, and HSBC Bank Plc slashed their forecasts as the yuan plunged more than 3% this month. A separate survey of 11 traders and analysts by Bloomberg projected it to drop to 6.7 per dollar in three months, about 2% weaker than current levels.